The Capital
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The Capital

Cryptocurrencies regulation

By #MetaHash on The Capital

The legal mode of cryptocurrencies differ. Some countries have already officially authorized transactions with blockchain assets, which are regarded as a commodity or digital investment asset. In other states, the regulation of blockchain transactions is limited to mandatory financial reporting. In other places, crypto circulation is not controlled in any way or is prohibited at all.

But the trend is clear. The blockchain industry in general, and cryptocurrencies in particular, are becoming more and more regulated. Of course, this is still a young industry, for example, the practice of collecting taxes is at an early stage. Nevertheless, it already exists.

Take a look at the US, the major crypto market, where the state is actively involved in the blockchain industry and limits the crypto community. Or Great Britain, one of the most financially advanced countries in the world, where detailed rules on transaction fees have long been developed. In Japan, where digital trading is also very popular, there is strict crypto taxation.

Operations with cryptocurrencies are quite attractive for government regulators, as they are a serious resource for the state treasury and a tool for strengthening control over the market and resources. However, some countries have given up restrictions and actively promoted the crypto market development.

We are talking about Singapore, where neither individuals nor corporations pay tax on profits from blockchain transactions, about Malaysia, where there is no tax on capital gains. In Portugal, the government also waived all payments for crypto trading. In South Korea, the authorities are considering a 20% income tax similar to lottery winnings, but now the country’s crypto trade market is still free from fees. In Germany, coin-holders are exempt from tax on transaction profits, unless they are not a legal entity. Russia plans to limit the market for cryptocurrency quite seriously, but faces resistance from legal authorities, business, and crypto enthusiasts, while Belarus has adopted a law that actually legalized cryptocurrency and freed the population from any form of taxation of transactions with digital financial assets until 2023. In Malta, there are no fees on profits derived from the sale of cryptocurrencies. In Switzerland, digital currencies are subject to the same rules as foreign currencies. The jurisdiction of this country is generally very friendly and favorable for blockchain companies and crypto holders. No wonder that #MetaHash is registered there ;)

The support of government regulators for the crypto industry is important for the whole industry that is actively developing even in crisis times. And while many states are afraid of the blockchain potential and are going to limit it, most developed and developing countries are trying their best to promote its further growth.

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